Baron Oil PLC - oil and gas exploration company with assets in the UK, Peru and Timor-Leste - Agrees with other licence holders Upland Resources Ltd and Corallian Energy Ltd to increase its stake in the P2478 offshore licence. Says the licence, known as Dunrobin, is located in the Inner Moray Firth area of the North Sea off the coast of Scotland.
Baron more than doubles stake in UK offshore licence P2478 to 32% from 15%. Meanwhile, Upland lowers its stake to 32% from 40%, while Corallian also reduces its stake to 36% from 45%.
In exchange for the addition of a further 17% interest in the asset, Baron agrees to pay the entire costs of the remaining Phase A work commitments under the licence, to a cap of GBP160,000.
"This work commitment is to undertake reprocessing of legacy 2D and 3D seismic data and perform other studies in order to reduce risk and refine volumetric estimates ahead of making a "drill or drop" decision before the end of Phase A in July 2023," says Upland.
"Accelerated seismic reprocessing is now due for delivery in early 2022 ahead of engagement with potential drilling partners," Baron adds.
Current stock price: 0.080 pence, up 10% on Wednesday afternoon
Year-to-date change: up 14%
By Scarlett Butler; scarlettbutler@alliancenews.com
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Upland Resource (UPL)
Baron Oil (BOIL)